Food And Fuel Reduce CPI

CPI grew from 1.2% in the year to September to 1.3% in the year to October according to a statistical bulletin from the ONS. So goods that cost £100 last October cost £101.3 this October.

The main contributors to the rise in inflation were smaller falls in the costs for motor fuels and air fares and price rises for computer games.

The three main contributors to annual inflation over the last five years have been housing, water, electricity, gas and other fuels and restaurants and hotels. Together these three sectors have accounted for nearly half of inflation each month. Food and fuel prices which normally contribute to rises in annual inflation have been helping to reduce it by 0.3%.

Easter Sees CPI Rise To 1.8%

The consumer prices index (CPI) grew by 0.2% to 1.8% over the year to April 2014 according to a statistical bulletin from the ONS. The CPI was 1.6% in March. The increase was mainly due to increases in airfares, sea fares and motor fuels probably as a result of the Easter holidays. These travelling costs were the main contributor to the overall increase in the CPI.

Annual CPI Inflation At 1.6%

CPI inflation increased by 1.6% in the year to March 2014. It was 1.7% in February. Between February and March 2014 the CPI rose by 0.2% compared with 0.3% between the same two months of last year. Downward pressure mainly came from transport, especially motor fuels but also from clothing and furniture and household goods.

Transport prices didn't change much between February and March 2014 compared with the 0.6% increase a year earlier. Petrol prices were unchanged compared with a 2.2% rise last year. Diesel fell by 0.4p/litre compared with a rise of 1.9p/litre last year. Air transport fares grew by less than they did a year ago.

As usual, prices for clothing and footwear increased between February and March but by less than last year. Downward pressure mainly came from women's outer garments. Furniture and household goods prices went up by 0.3% over the month compared to a rise of 0.8% last year.

The main upward contribution came from restaurants and hotels where prices increased by 0.5% compared with 0.2% last year mainly from price increases for overnight stays in hotels. Prices for alcohol, particularly spirits, and tobacco rose this year but fell last year.

CPIH which includes owner occupier housing costs (OOH) grew by 1.5% in the year to March 2014. RPIJ grew by 1.8% from 2% in February. RPI annual inflation was 2.5%.

Consumer Inflation Down To 2% Target

The CPI grew by 2% in the year to December, down from 2.1% in November, due mainly to contributions from the food and non-alcoholic beverages sector and recreational goods and services. Inflationary increases in motor fuels partly offset the downward pressures. Price increases for gas and electricity over the year were slightly more than last year resulting in an upward contribution to inflation. The Bank of England had set a target of 2% for inflation for stability. It is the first time that the CPI has been at 2% since November 2009 (1.9%).

The three main contributors to inflation in recent years have been food and non-alcoholic beverages, housing, water, electricity, gas and other fuels and transport (incl. other fuels). These sectors combined have accounted for more than half of the inflation rate for each month.

Agriculture Sees Fall in API in August

The agricultural prices index published by Defra for all outputs fell by 2.5% in August but remains 0.6% higher than last year. The API for all inputs fell by 0.5% but is still 1% higher than last year.

All of the output price categories fell with the exception of milk. Cereals fell 9.7% and are 13% lower than last year, oilseed rape fell 8% and is 15% down on last year, potatoes are 8.8% lower than last year and vegetable prices are down 5.1% and 6% on last year. Livestock prices are 4% down in August but are still 5% higher than last year. Milk has seen a 2.2% increase in price in August and are 20% higher than last year.

On the input side animal feed has fallen in price by 7.2% reflecting falling prices in cereal and industrial crops. Motor fuel price increases of 2.7% have put them 2.3% up on last year.

CPI Up To 2.9%

Inflation, using the Consumer Prices Index (CPI), increased by 2.9% in the year to June 2013 compared to 2.7% in May, an increase of 0.2%. The Government's target is still 2%. The main upward drivers were motor fuels and clothing and footwear. Air transport provided the biggest downward pressure.

Consumer Price Inflation At 2.4%

The CPI grew by 2.4% on the annual comparison for April 2013 down from 2.8% in March but still above the 2% target set by the Government. The annual rate has however been relatively stable over the last six months. The largest downward contribution came from transport costs, motor fuel and air fares. Food and non-alcoholic beverages provided the only real upward pressure.

Inflation Unchanged Under Pressure

The Consumer Prices Index (CPI) annual inflation remained unchanged at 2.7% (124.4) in November as compared with October 2012. The unchanged figure however does not show the significant upward pressures on the CPI from food and non-alcoholic beverages and housing and household services during the month. Downward pressures on the CPI came from motor fuels and furniture, household equipment and maintenance. The RPI inflation figure stands at 3% (245.6) down from 3.2% in October. Motoring expenditure, housing and household goods provided the main downward pressure offset slightly by upward pressure from food.